What is CSR2 Soil Productivity Rating?

May 19, 2022

Corn Suitability Rating (CSR) Explained

In 1971, Thomas Fenton a professor at Iowa State University developed the Corn Suitability Rating (CSR). It is used to measure the quality of the soils of a piece of farmland. The CSR2 formula includes six components and is calculated on a map unit basis using data and maps from the Iowa Cooperative Soil Survey. Read more here about what’s included in each component of the equation. In 2013, CSR was re-vamped to CSR2 as a new and improved system to calculate the soil productivity rating. We use CSR2 in Iowa, but many surrounding states have a productivity index as well. Such as National Commodity Crop Productivity Index (NCCPI) and PI (Productivity Index).

Soil Productivity vs. Soil Fertility

CSR2 studies a soils productivity – not soil fertility. Soil fertility can change depending on the nutrients in the soil, crop grown, farming practices, etc. This is why you would perform a soil test to determine the soil’s fertility. Soil productivity however does not change! It measures a farms ability to be intensely farmed over a long period of time. It is a constant number between 0-100, 100 being the best.

Why is CSR2 Important

CSR2 is important when it comes to determining what a farm might be worth. It is used to determine how to tax farmland. Higher quality farms with a higher CSR2 value are taxed more than lower quality farms. Same applies to determining how much a farm is worth on the market. Typically, higher CSR2 farms are worth more and sell at a higher amount then lower CSR2 farms.

This doesn’t mean that a low CSR2 farm will always sell at a lower amount. Some lower CSR2 farms (such as pastureland, development land, hunting/recreational ground) can sell for more than tillable farms. There are other factors that determine a farms worth. Demand, commodity prices, inflation, interest rates, buyer pool, location, amount of acres, access, improvements, etc. can all affect a farms value as well.

CSR2 Formula

Calculating Farmland Value based on CSR2

Many of my clients ask, “What is your opinion on what my farm is worth?”. To answer their question, I typically first take a look at the CSR2 value of the farm especially if it is an all tillable farm. In this scenario, I use a database that calculates the CSR2 of the farm and it generates a soils map for me to study. I then look at the $/CSR2 from recent sales, surveys, and reports, for the average of the county of where the farm is located.

I take that average and multiple it by the CSR2 value of the farm. For example a farm is 92 CSR2 in a county with and average of $165/CSR would be be worth around $15,180/acre. This is just an estimate. I will sometimes adjust this number depending on the other factors I listed above that affect farmland values in my free market analysis that I provided to interested sellers.

Do Buyers Look at CSR2 Values of Farms?

Yes and no. Some buyers/bidders I talk to want to know the CSR2 value right away and some don’t factor it into their decision making of buying a farm. Often though, bidders on a farmland auction or buyers putting in an offer will use the $/CSR2 calculation on what they think the farm is worth. From my example above of $165/CSR, one buyer might think the farm is worth more than the average and bid $180/CSR2. Rr $16,560/acre and some might only be willing to bid up to $150/CSR or $13,800/acre. The $/CSR2 is simply a guideline a buyer might follow and tool to use in determining what the farm is worth. It is just one factor.

Iowa CSR2 Averages per County

Below you will see a map of Iowa with each counties average CSR2 value. Iowa’s state average CSR2 is 68.4. You will notice from the map that O’Brien has the highest CSR2 average of 91.4 in NW Iowa and Decatur has the lowest rating of 40.1 CSR2.

Iowa CSR2 Averages per County

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Farmland Auctioneer Talk

January 20, 2022

I have a ton of topics running through my head currently about farm real estate. So here’s a brain dump on this COLD Iowa winter day!

Banana Bread Muffins and Walnuts from Grandma’s Farm

Okay first, I just have to start by sharing that I made banana bread muffins the other night. Since I had ripe bananas. As I was eating one this morning, the muffin reminded me of when I would make banana bread with my mom when I was little and how my grandma would always pick her own walnuts off the farm! There was something so heart warming about this and of course delicious! Does anyone else have memories linked to objects or things like this? It’s crazy how just a muffin can trigger such emotion!

Who Will You Trust To Sell Your Farm?

My broker (and boss) Jason, shared this video with me recently. It really made us think about what makes a person hire a certain land company to sell their farm. Is it the so called performance statistics that draws sellers to hiring a certain auction company or listing agent? Such as number of acres sold, dollars sold, number of clients served, and claiming to be the leading farm real estate auctioneer or agent business?

Or do sellers look for someone who they can trust? Someone who has the qualities, knowledge, and tools to guide them to a successful sale. Even though that auctioneer or agent might not be the “top dog?” Here’s the video for reference:

Farm Real Estate

For someone that started in the farm real estate business just a few years ago, I often compare myself to the “top dogs”. Ones that have sold thousands of acres, millions of dollars, and always seem to be having a new auction. The scary thing though is that the auction business in Iowa is not regulated. It may surprise you but there are no licensing laws to becoming an auctioneer. Anyone in Iowa can wake up and say, “I’d like to be an auctioneer”. However, there are laws and licensing requirements to being a realtor in Iowa.

Are You the Seller the Number One Priority or is the Buyer?

From someone who works in this industry, I’m warning you that there are some high performers that are very un-trustworthy. Just like the video pointed out above. When it comes to selling your most valuable asset, make sure you’re hiring someone who can back up their statistics, provide evidence, and hire someone who’s full interest is helping you as a seller. There are some sneaky deals that have happened with other Iowa land companies. For example, I’ve seen deals where a buyer benefits more from the sale than the seller. This happens more than you think. At DreamDirt though, sellers are our number one priority. We are here to provide you a safe, stress and worry-free farm sale. While achieving the highest result for you farm auction or listing!

Auctioneer School

I’ve taken all the classes and tests to be a salesperson (realtor) in Iowa. Currently, I’m working on becoming a broker as well! This helps serve my auction clients since I have the knowledge of real estate law that many auctioneers who are not licensed real estate agents do not have! In March, I’ll start my second year of CAI (Certified Auctioneer Institute) school. This 3 year program is a pristine designation for auctioneers that want to learn more about the auction industry. Even though it’s not required by law.

Full-time Farm Real Estate Auctioneer and Agent

Along with all the continued education classes I’ve taken, I honestly learn something new every single day by working closely with the DeamDirt team. My full-time job is farm real estate. Many other auctioneers and agents only help clients as a side hustle or part-time job on their free time. I’m involved in farmland transactions, advertising, client calls, customer help, and more all day – every day! One of my first farmland auctions was back home in Dallas County, IA. Just down the road from where I grew up in Adel. The client was a mutual friend. They put a lot of trust into me being a young professional in this industry. Her testimonial still means the world to me!

“Thank you Rachel Hoy. We have been friends with Rachel for several years and don’t let her age fool you, she knows her stuff and is a true professional. We appreciate all her help from start to finish.” – Mandi Orman, Dallas County, IA

You Never Know Who’s Watching You

I received a message the other night from someone I went to Iowa State saying she had inherited land with other co-heirs and had been following me since I started after college in 2018. Honestly, I was a little surprised to see her message since I often don’t get a whole lot of feedback on my facebook posts, blogs, or some videos. She said she had read my most recent blog about 6 easy steps to selling farmland and that made me so excited! I have a ton of great free resources for anyone interested in selling land in Iowa and want to help as much as possible! I love answering questions from my clients and sharing how I can help them through the land seller journey.

I spend a lot of time on TikTok. Probably more than I want to admit but it’s a great place to learn about topics you’re interested in. Lately I’ve been sharing videos about recent farmland sales in Iowa and average per acre prices for the 99 counties in Iowa. I’m trying to provide valuable content that can help someone better understand the farmland selling process and the farmland market in Iowa. With a little entertainment here and there showing my background of growing up on a farm in the mix!

If you’re thinking of selling farmland, now is a great time of year to do so! To get started, fill out my contact form below or click here.

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An Inheritance is a Gift Not an Entitlement

January 7, 2022

While cleaning out our office desk at the farm, I came across a piece of paper with my grandma’s handwriting on it saying, “An inheritance is a gift, not an entitlement.”

I’ve been thinking all week about that phrase and how I can apply it to my own life. Being a farmland auctioneer and land agent, time and time again I’ve seen the greatest number of tears, arguments, and confusion come from inheriting parent’s personal possessions and property. Especially when inheriting the family farm with siblings and family members.

Inheriting the Family Farm

My Grandma Hoy passed away in December of 2020. My father inherited the family farm since he is the only survivor (besides my sister, half-brother, and I). Even though there were no fights over settling her estate due to only going to one heir, I can’t help but think what it would’ve been like if my dad’s brother was still alive. It makes me sad when I see families torn apart after their parents pass due to fighting over their inheritance gifts. It may surprise you but it happens more often than you think! Especially if there is already tension between siblings.

I’m extremely lucky and grateful for having a family farm! In 1944,mMy great-grandpa Ed bought our farm in Redfield, IA. My family has worked hard to keep it in the family ever since. My grandpa Hoy was the youngest of his siblings. After returning back from serving fro our country, my great-grandpa sold the farm to him. In 1958, my grandparents got married and two years later had my dad – a baby boomer. In 1964, is when my uncle was born but he passed away when he was 20.

I’ve seen my dad and grandparents work 24/7 on our farm. I can’t help but think what my life would’ve been like if I didn’t grow up as a farm kid. Agriculture has always been a big part of my life and my dream is to keep the family farm going. From the disputes I’ve seen between co-heirs, it makes me nervous for what will happen (God willing) when the farm is passed on to my younger sister, half-brother, and I. We all get along so extremely well currently! I don’t think the farm would ever tear us apart, but it’s always good to talk to one another about what will happen and Dad’s wishes for us.

Inheriting the Farm with Siblings

How to sell the family farm

Between my siblings, I’m the most involved on the farm. My half-brother lives in North Carolina with his family and my sister doesn’t have the passion like I do for livestock and agriculture – which is okay! However, I do want them to enjoy the family farm and inheritance just as much as me without any fights. My half-brother and I often talk now about how we will do anything to keep the farm going. He loves riding dirt bikes, hunting, and having a place to escape and be free. This all makes my worries of ever fighting over the farm low.

Continuing the Family Farm After Inheritance

We are in the process of making sure Dad’s will is detailed. It will describe the roles and responsibilities of my siblings and I’s part of the farm after he passes. This will ensure the family farm continues and how we will receive his inheritance.

Talking about wills and what will happen after your parents’ pass is no one’s idea of fun. However, a well-planned, well-executed will can prevent family conflicts after a loved one passes. Again, FAMILY FEUDS OVER INHERITANCE HAPPENS MORE OFTEN THAN YOU’D LIKE TO SEE!

For many, it is not all about the money. Some are okay with having memories of their parent’s belongings. Others will argue over china sets, photo albums, tractors, and more. These fights are ugly and can split families forever unfortunately. You don’t think it will happen to your family and loved ones until it comes down to deciding who gets what and greed that sets in.

Arguments over inherited items and property can last for well over a year. I’ve seen this first hand as a farm real estate agent and auctioneer. Many of the fights are not over the items and land itself but working out old issues with each other and sibling rivalries.

You can easily picture siblings say things like “sibling a has always walked all over us” or “sibling b has always gotten the better deal”. It’s so expensive to fight these family disputes over family possession in court. Some people wind up spending MORE on legal fees than the estate is even worth.

Farm Estate Planning

Dying without a will or with a poorly drawn will can produce some truly awful results for your family. Even worse, your money and property can wind up in the wrong hands or in unexpected hands. How can you avoid these difficulties? I recommend hiring an experienced estate attorney to draft a comprehensive will. Iowa State University also has great resources for estate planning which can be found here.

Aging parents should ask their children what things they want most. Then make a hand written addendum to the will, bequeathing the most financially or sentimentally valuable items to specific individuals. Heirs might not get exactly what they want, but allowing people to speak their piece goes a long way towards PRESERVING family ties after the surviving parent passes away.

An inheritance is a gift not an entitlement. It’s not something you should take for granted. Those who do, can get themselves into deep financial trouble and cause long term family fights. Wills, lawyers, and deceased parents do not shatter family bonds. Survivors do or don’t depending on which they value more their brothers and sister or dollars and property.  

Inheritance Problems with Farmland

If you’re struggling with co-heirs over inherited farm real estate, reach out. I understand the situations you might be in and can provide some relief. I also provide tips on how to sell the family farm. If that is your goal and wishes you can read more here. Feel free to contact me with questions by emailing me at Rachel@DreamDirt.com or call me at 515-954-8063.

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Goals for 2022 and Weekend at Farm Reflection

January 3, 2022

New Year’s Eve

So much is on my mind right now for some reason. Thinking about what makes me happy, goals for 2022, what I should talk about related to farm real estate, my family’s history, and the family farm.

This weekend I’ve been home with my dad at our family farm outside of Redfield in Dallas County, IA. My husband, is currently in Oklahoma City for the Cattleman’s Congress Livestock Show for his job. When he is gone, I like to come hang out on the farm and stay with Dad for a few days and catch up.

Friday was New Year’s Eve, and I was going to go out and be with friends but we got an ice storm and roads were slick so I stayed home and was in bed by 9pm. I know right?!? I’m lame and getting old!

Who else did this?

Happy 2022!

Saturday we all woke up to a new year! Happy 2022! Like the majority, I wrote down my goals for the new year which I typically don’t do, however I really focused on what I want to accomplish this year and task that will help me accomplish those goals. I also jotted them down in my notes on my phone so I can look at them every day. Why not put my goals where I can easily access them instead of a journal or notepad? I also am liking the idea of making a dream board so I can visually see my dreams when I’m in my home office to keep me motivated. Here are my goals for 2022 and tasks to keep me accountable:

Goals need a plan and actions to help you achieve your goals

My 10 Goals:

  1. Do things that make ME HAPPY
    • 1. Action: Find at least one thing that makes me happy and add to 365 list each day
  2. Spend more time with Family and Friends
    • 1. Action: Set phone down when with company
    • Action: Schedule more dates and say yes for meeting up!
  3. Make more improvements on the farm
    • 1. Action: Be more present with Dad when home and utilize his help
    • 2. Action: Get outside!
    • 3. Action: Start on small projects
  4. Be more spiritual and practice my faith
    • 1. Action: Journal
    • 2. Action: Recognize signs from angels
    • 3. Action: Pray during the good and bad
  5. Be more active
    • 1. Action: Move my body for 5 minutes if I don’t feel like working out – should encourage me to keep going and complete 30-45 minutes of exercise
    • 2. Action: Take Dude on as many walks as possible!
    • 3. Action: Sign up for classes at the Crew Center
  6. Be a loving wife
    • 1. Action: Get ready in the mornings even though I work from home
    • 2. Action: Ask how Bryce’s day was and don’t complain about the small things
    • 3. Action: Set phone down at night when together and talk about our future, our goals, learn something new, our cattle herd, etc.
  7. Grow my farm real estate business:
    • Action: Create content for sellers and buyers
    • Action: Show my face more and network
  8. Eat a balanced diet
    • 1. Action: Portioning plate and include all varieties of food categories
    • 2. Action: Allow myself to have cheat meals follow 80/20 rule
    • 3. Action: Try new foods! Order Hello Fresh and Whole and Hearty Meals To – Go
  9. Drink Less Alcohol
    • 1. Action: Drink at least 100 oz of water per day
    • 2. Action: Only drink socially
    • 3. Action: Focus on progress and take it day by day
  10. Read before bed
    • 1. Action: Set phone down at night
    • 2. Action: Buy used books and sell ones I have read
    • 3. Action: At least 10 pages

Weekend Re-set

I’ve always been an open and honest person and sharing my goals to the public is uncomfortable but I hope it inspires you to try some of my goals and action tasks as well!

Now back to the weekend, I had a very relaxing snowy Saturday! I did clean up Dad’s house some, worked out, read, and went outside for about 5 minutes since it was COLD!

Sunday, I was up before 8am and Dad had already done chores. I’m determined to get out of bed one of these mornings early to help feed cows while I’m home! There’s something so rewarding about feeding livestock the depend on you it’s hard to describe but it always puts me in a good mood even if it’s below zero!

Farm House Projects

I asked Dad what projects I could help him with and we decided it was time to clean and organize the office room. It’s been a hard year on our family since my grandma passed away December of 2020. We spent majority of last January and February moving into the farm house and it’s hard knowing what to keep, give away, sell, or throw away. I feel so guilty trying to update and make grandma and grandpa’s house our own and changing out a few things. Going through the office though was a good first step.

My sister and I did do good work on the upstairs bedrooms this past year but the main floor and basement could still use some work. The office looks so much better and Dad was thankful I kept after it all day. Finished the evening by watching some football, doing some yoga and stretches and reading before bed.

Monday Morning Motivation

This morning I took Dude, my golden retriever, to the vet for his annual wellness exam at Adel Vet Clinic and grabbed a coffee from The Morning Grind. The roads are still covered in snow and icy in areas but not terrible.

Today I am focused on growing my business and how I want my work days to look like. I’ve been with DreamDirt for a little over three years now and am a full-time farmland auctioneer and real estate agent. I love creating content on social media for sellers and buyers and communicating with clients. If you’d like to see some short videos about farmland in Iowa follow my Tik-Tok and Facebook page! Helping land owners become more educated on the farmland selling process is my main priority, and I enjoy answering your questions!

Future of Farmland

Farmland Seller Resources

I have several great free resources if you are ever in the position of selling farmland or know someone who is! All you need to do is fill out my contact form and I’ll get back to you ASAP! I offer free farmland market evaluation consultations and please think of me and the team at DreamDirt when it comes to selling farm real estate.

Take care and stay warm!

Rachel

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How to sell the family farm

How To Sell the Family Farm

August 24, 2021

Deciding to sell the family farm is one of the most difficult decision to make. I grew up on our family farm in Iowa that my grandparents bought back in the 1940’s. I enjoyed following my grandparents around doing chores while I was young, riding in tractors, and playing in the dirt. Now that it is just my dad and I running the farm, I could never imagine selling it. I know the emotional connection you have with your family’s farm and how hard this decision can be. However, sometimes it’s the only choice and what’s best for you and your family.

Inheriting a Farm with Multiple Family Members

Being an auctioneer and realtor, I’ve heard time and time again, “our mom/dad just passed away recently and now my brother/sister(s) want to sell the land we inherited”. Most often, the sibling I talk to is the one in charge of the estate or the sibling that has been farming the land and doesn’t want to agree to selling. Not only do I understand what it’s like to grow up on a family farm but also the, “I’m the only sibling that has interest in farming or does all the work” feeling. I was definitely the “tom boy” growing up between my younger sister and I. Even though my sister enjoys hanging out on the farm on the weekends and checking cows, she just doesn’t have as much passion and interest in farming as I do. Which is okay.

How to Decide if You and Your Siblings Should Keep the Family Farm

I know we are not the only siblings this way. It can be frustrating when it comes to deciding wether to keep or sell the family farm you now inherited. Or if you are reading this and deciding whether or not to sell your land or pass it on to your family, here are some secrets and tips.

Having the Important Conversation Now

I wish more families would talk before the passing of a loved one. My grandma got sick fast and passed away quickly, leaving the farm to her only living son, my dad. We know that her and grandpa’s wishes are to keep the farm running. If we ever get into financial troubles then it’s okay to sell a certain part of the farm. My dad and I know keeping the farm is best for us right now and we enjoy having it.

What is your plan?

However, this isn’t always the scenario for other families. I’ve seen siblings fight over what to do with the family farm and tear their relationship apart. Most often because of greed and other conflicts. I know that this is not what their parents would want. This can easily be avoided and save relationships if settled before the land owner passes. No one is promised tomorrow. It’s critical to have the conversation of what will happen with the family farm and have a plan. So what are the options you have for transferring the farm to your kids or other family/friends?

Farmland Transition and Estate Planning

How’d the conversation go with your the rest of your family? Do you know who would continue the farm? Do you know if some of your children could use the money now instead of owning land? Are any of the kids interested in owning the family farm? Are medical bills pilling up? Would you like to enjoy your hard work of farming over the years and retire? Depending on how you answer these questions, more than likely I would suggest selling now or dividing the land to inheritors now.

But you’re only saying this because you’re an auctioneer!

No, I’m saying this because of the drama that comes once you have passed. When there is no clear plan of what happens once your family inherits your land, this causes frustration, anger, and confusion. I see it all the time being an auctioneer. When more than one person inherits the farm, there’s always tension between members and emotional stress. My best advice is to sell your land now or divide the land to have only one owner. Here’s why.

Benefits of Selling Farmland to Avoid Family Conflict

Let’s continue with the scenario of one sibling wanting to keep the farm and continue farming and the other sibling does not and would rather have the money. As the landowner/parent you are faced with the difficult decision of deciding to sell now or let the kids figure it out when they inherit it. To avoid family conflict, I recommend selling now. Money from selling the farm can easily be split up compared to splitting the farm between multiple family members. If you’re worried about your child that still would like to keep the farm, as auctioneers we can help sell land to family members. We can do this by giving family per bid discounts. This allows them to have a fair chance at purchasing the land at a discount.

Dividing Farmland

Or you could divide the land first. Then each sibling can better decide what they want to do with the part they inherit. You could even keep the part of the farm your child who farms currently and is interested in keeping for future years, and allow them to rent it from you. That way you have still have income during retirement years. Selling the farm now could also allow more flexibility of where each kid would like to farm.

The Family Farm is Not Everyone’s Dream

Have your children moved off the family farm and staring their own farmstead across the state? Would they like to re-invest the money into farmland closer to where they live now with a 1031 exchange? Are they trying to start their own business or need the money to cover expenses? Emotions play a great role when selling a family farm. Realistically, money can be split more evenly. Which won’t cause the family to tear each other apart compared to dividing the land. Everyone has their own passions and dreams. It could be very well that the family farm is not someones passion. As I mentioned above, I have the passion for continuing our family farm but my sister does not. However, I know she still deserves to enjoy the benefits to the family farm. She should earn income or money from it just as much as I do.

Continuing the Family Farm

Many of my clients who have inherited the family farm have said that they grew up on the farm in Iowa, but now live in a different state. It’s often difficult to let go of things that meant so much to you and your loved ones. If you don’t have interest in farming and nervous about the idea of selling and letting go, I encourage you to think of all the memories you have of running around on the farm as a young kid and write them down. This often helps my clients realize that memories will continue forever. Even if the farm doesn’t continue on in the family and share these memories down the road. You could also continue the family farm by renting out to someone interested in farming!

Farmland Buyers

As an auctioneer, we can set up an auction for rent instead of selling the farm. It may surprise some people that our most common farmland buyers are still farmers themselves and not investors. If you’re thinking about selling, you could give the chance to a farmer looking to expand his operation. Or help a beginner farmer start his/her dream! The possibilities are endless and I’m here to help you through the process. I will listen to your ideas and wishes.

Helpful Resources for Transferring and Selling Farmland

Fear of what will happen to the family farm doesn’t need to cause you stress. There are several free resources to help you through the process of transferring the family farm. Iowa State University Extension and Outreach has several great resources to learn from for transition and estate planning. Resources can be found here. As someone who also understands grief and farming, I’m always here to answer your call or message. Don’t know where to start? I can make the process easy and comfortable for you. Let me handle all the details and answer your questions. I might be an auctioneer, but more importantly I will be your listening ear through everything. Whether you would like to vent or share memories, you can call me any day!

Rachel Hoy 515-954-8063

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Iowa Farm Lease Termination

How to Terminate Farm Tenant and Lease in Iowa

August 20, 2021

Steps to terminating a farm tenant

If you are thinking of selling farmland in Iowa in the upcoming year, it’s best to terminate your farm tenant now! This is because when the farm trades hands after selling, the new owner will now have rights to the next year’s crop. As long if the farm lease has been terminated properly. You can still sell farmland with a tenant. However, it is typically more appealing to farmland buyers if there is not a tenant the year they take possession of the farm. I can help you structure your land auction to provide rent credits and possession rights to the high bidder if you decide to sell during next year’s crop season with a tenant. Follow these easy steps to terminate a farm tenant in Iowa. If you have any questions email me at rachel@dreamdirt.com.

Be aware of September 1st Deadline!

In Iowa, as a landowner you have to give notice to your farm tenant that you are terminating the lease on or before September 1st of the current year. You can either serve the termination by certified mail or in-person directly to the tenant.

Print this Farm Lease Termination Letter from Iowa State Extension to terminate farm tenant

Click on the photo to open pdf document of this farm tenancy termination notice letter. Fill out respected fields and sign.

Mail the letter to current farm tenant through certified mail

Keep your receipt from post office showing proof that you sent by certified mail

Farm Tenancy will end the following March 1st

If you do not meet the September 1st deadline, the farm lease will automatically re-new under the same conditions and terms of your current lease. Once termination has been given on or before September 1st, the tenant will have tenancy possession till March 1st.

Next steps for selling farmland in Iowa

Are you thinking of selling farmland in Iowa? Fill out my questionnaire and get started on learning how to sell your land today!

I’m interested in learning more!
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Iowa Farmland Market Results

June 28, 2021

Tillable Land Sold During June 21st – 27th

From $7,500/acre to $17,500/acre….Check out these recent farmland sale results!!! Farmland market is as hot as it is outside here in Iowa! Farmland auctions in June have really turned up the heat! Get started selling farmland today by filling out my questionnaire!

LINN COUNTY, IOWA LAND AUCTION

  • 90.69 acres
  • Online Virtual Auction
  • Located near Walker, IA
  • Sold for $9,800/acre
  • 97.8% tillable
  • 59.2 CSR2
  • $165.5/CSR2

HUMBOLDT COUNTY, IOWA Land Auction

  • 61.38 acres
  • Online Virtual Auction
  • Located near Dakota City, IA
  • Sold for $12,400/acre
  • 92% tillable
  • 81.4 CSR2
  • $152.33/CSR2

GREENE COUNTY, IOWA Auction Results

  • 388.86 acres sold in 3 parcels
  • Virtual Live Auction
  • Located near Bagley, IA
  • Tract 1
    • 160 acres
    • Sold for $13,300/acre
    • 96% tillable
    • 86.8 CSR2
    • $153.23/CSR2
  • Tract 2
    • 148.86 acres
    • Sold for $13,000/acre
    • 96.5% tillable
    • 83.10 CSR2
    • $156.4/CSR2
  • Tract 3
    • 80 acres
    • Sold for $13,000/acre
    • 98% tillable
    • 79.5 CSR2
    • $163.5/CSR2

BUENA VISTA COUNTY, IA Farmland Market Results

  • 159.05 acres sold in 2 parcels
  • Live and Online Auction held at Marathon Community Center in Marathon, Iowa
  • Located near Alber City, IA
  • Tract 1
    • 153.28 acres
    • Sold for $10,050/acre
    • 95% tillable
    • 82 CSR2
    • $122.56/CSR2
  • Tract 2
    • 5.77 acreage
    • Sold for $139,000/acre
    • 2,032 sq. ft. ranch home, 3 BD, 1 Bath
    • 26′ x 32′ steel utility building, 68′ x 40′ steel utility building, 40′ x 80′ Quonset building
    • 8,000 bushels of grain storage

POLK COUNTY, IOWA Farmland Auction

  • 75 acres
  • Live auction with online bidding held at the American Legion in Bondurant, IA
  • Located near Dakota City, IA
  • Sold for $9,000/acre
  • 95% tillable
  • 62 CSR2
  • $145.16/CSR2

MITCHELL AND FLOYD COUNTY, IOWA Farmland Market Results

  • 240 acres sold in 3 parcels
  • Live auction held at CRC Events Center at the Mitchell County, IA Fairgrounds
  • Located near Osage, IA
  • Tract 1
    • 79.55 acres
    • Sold for $12,275/acre
    • 98.5% tillable
    • 94.4 CSR2
    • $130/CSR2
  • Tract 2
    • 79.51 acres
    • Sold for $12,275/acre
    • 96.4% tillable
    • 90.6 CSR2
    • $135.5/CSR2
  • Tract 3
    • 80 acres
    • Sold for $7,500/acre
    • 90% tillable
    • 58.3 CSR2
    • $128.65/CSR2

SAC COUNTY, IOWA Farmland Auction

BUENA VISTA COUNTY, IOWA Land Auction

  • 80 acres
  • Live auction held at the Vaudt Distributing in Rembrandt, IA
  • Located near Rembrandt, IA
  • Sold for $12,000/acre
  • 96.8% tillable
  • 87.7 CSR2
  • $136.8/CSR2

HARDIN COUNTY, IOWA Farmland Auction

  • 80 acres
  • Live auction with online bidding held at the Radcliffe American Legion
  • Located near Radcliffe, IA
  • Sold for $14,300/acre
  • 98% tillable
  • 85.4 CSR2
  • $167.4/CSR2

LINN COUNTY, IOWA Farmland Market Results

  • 160 acres sold in 2 parcels
  • Live auction with online bidding held at Columbus Club in Cedar Rapids, IA
  • Located near Marion, IA
  • Tract 1
    • 80 acres
    • Sold for $17,250/acre
    • 93.4% tillable
    • 92.5 CSR2
    • $186/CSR2
  • Tract 2
    • 80 acres
    • Sold for $17,500/acre
    • 99% tillable
    • 91.9 CSR2
    • $190.42/CSR2
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Iowa Farmland Auction Results

June 21, 2021

Week of June 14 – 20

Several land auctions in Iowa took place this week! I’m an online auction coordinator for DreamDirt, and we had two auctions this week that were very successful! Our sellers have been extremely happy with the results of our online auctions and we’re looking forward to seeing what the rest of the year brings! I also want to mention that if you own land in Iowa but live out of state, reach out! We meet with out of state land owners all the time over zoom. If you live here in Iowa, I’m more than willing to drive and meet you anywhere or meet over video on zoom as well! I provide free consultations and want to help you get your questions of selling farmland answered! Start today by filling out my questionnaire!

Story County, Iowa Auction

  • 360 acres sold in 3 parcels
  • Near Nevada, IA
  • Virtual live auction online only bidding
  • Near 100% tillable
  • Tract 1
    • 80 acres
    • Sold for $16,100/acre
    • 84.9 CSR2
    • $189.63/CSR2
  • Tract 2
    • 120 acres
    • Sold for $16,100/acre
    • 86.30 CSR2
    • $186.56/CSR2
  • Tract 3
    • 160 acres
    • Sold for $14,500/acre
    • 84.90 CSR2
    • $170.78/CSR2

Chickasaw County, Iowa Land Auction

  • 79 acres
  • Live and online auction held at the Alta Vista Hall in Alta Vista, IA
  • Sold for $8,400/acre
  • 85.5% tillable
  • 75.72 CSR2

Fremont County, Iowa Farmland Auction

  • 186.8 acres
  • Located near Sidney, IA
  • Online Only Auction
  • Sold for $4,750/acre
  • 59.1 CSR2
  • 80% tillable
  • $80.37/CSR2

Winneshiek County, Iowa Farmland Auction

  • 24.80 Acres
  • Online only auction
  • Located near Calmar, IA
  • 80.3% tillable
  • 68.4 CSR2
  • Sold for $10,000/acre
  • $146.20/CSR2

Buena Vista County, Iowa

  • 25.10 acres
  • Online only auction
  • Located near Alta, IA
  • Sold for $13,311/acre
  • 96.4 CSR2
  • $135.37/CSR2
  • 100% tillable

O’Brien County, Iowa Auction

  • 80.15 acres
  • Live auction held at Primghar Golf and Country Club
  • Located near Primghar, IA
  • Sold for $17,200/acre
  • 94.8 CSR2
  • $181.43/CSR2

Poweshiek County, IA Land Auction

  • 150 acres
  • Live auction held at Montezuma Memorial Hall
  • Located in Montezuma, IA
  • 87 CSR2
  • Sold for $15,000/acre
  • $172.41/CSR2

Palo Alto County, IA

  • 236.3 acres
  • Live auction held at Mallard Community Center in Mallard, IA
  • 97% tillable
  • 82 CSR2
  • Sold for $11,800/acre
  • $143.90/CSR2

Greene County, IA

  • 304.80 acres sold in 3 parcels
  • Virtual Live Auction Online only bidding
  • Located near Bagley, IA
  • 83.9 CSR2
  • 92% tillable
  • Tract 1
    • 200 acres
    • Sold for $11,600/acre
    • 81.1 CSR2
    • $143.03/CSR2
  • Tract 2 80 acres
    • Sold for $14,400/acre
    • 88.6 CSR2
    • $162.52/CSR2
  • Tract 3 24.8 acres
    • Sold for $12,200/acre
    • 86.20 CSR2
    • $141.53/CSR2

Carroll County, IA Land Auction

  • Live auction with online bidding held at Carroll American Legion Hale in Carroll, IA
  • Tract 1
    • 91.11 acres
    • Sold for $16,200/acre
    • 95% tillable
    • 84.1 CSR2
    • $192.63/CSR2
  • Tract 2
    • 160 acres with steel machine shed and bin
    • Sold for $15,100/acre
    • 94% tillable
    • 61.4 CSR2
    • $245.92/CSR2

Shelby County, IA Land Auction

  • 420.28 acres sold in Three Tracts
  • Live auction held at Therkildsen Center in Harlan, IA
  • Tract 1
    • 152.20 acres
    • 71.3 CSR2
    • 80% tillable
    • Sold for $8,125/acre
    • $113.96/CSR2
  • Tract 2
    • 150.08 acres
    • 69.6 CSR2
    • 40% tillable
    • Sold for $5,550/acre
    • $79.74/CSR2
  • Tract 3
    • 118 acres CRP
    • Sold for $5,550/acre
    • 65.9 CSR2
    • $84.09/CSR2

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5 Ways to Save Money When Selling Farmland

June 18, 2021

Farmland owners! Are you thinking of selling some farmland real estate and concerned about how much it will cost to sell? You can certainly try to do for sale by owner. I’m not stopping you from trying but there are some dangers that come with FSBO. Instead, try these 5 cost saving tips when choosing to sell by auction or listing! Save your money!

Want to save over half of commission costs? Hire an auctioneer instead of realtor!

I come from an auctioneer and realtor background. I’ll be the first to tell you that hiring auctioneers will save you thousands! Typically, realtors will charge you twice as much in commission costs compared to auctioneers! Realtors will often split commission with a buyers agent so you are paying 2 agents instead of 1.  You are paying for your agent and also the buyers realtor! To compensate for the cost of the additional brokerage coming from the buyer’s side, a listing realtor will typically charge more than double! In-case they need to split the commission 50/50 with buyer’s side. This is why hiring an auctioneer can save you over half of commission!

At DreamDirt Farm and Ranch Real Estate where I work, we don’t offer cooperative brokerage for auctions in most cases. It’s not necessary and does not serve our client well. We are dedicated to finding buyers for your property. Since your auction is open to the public, and with our exceptional marketing and advertising, buyers are able to find your land auction and are welcome to bid! Realtors often ask us to share commissions on our auctions hoping to bring the buyer. However, we’ve found that with our advertising on Zillow and many other aggregation websites the buyers are already exposed to the listing. Buyers agents never serve to improve the outcome of your auction . This helps you save money on commission costs since you are only paying us and not the buyer’s agent. Our commission is typically 1-5% for land auctions, which is considerably low compared to 5-10% realtors charge. 

Choosing an Auction over a Listing for Sale can save you money and time!

If the first money saving cost tip didn’t convince you to market your property by auction, here’s another reason! 

Our auctions typically take 60 days to complete. This includes 30 days of having your auction open for bidding. Followed by 30 days following for closing process with new buyer. We have found 60 days to be extremely effective! The 30 days gives us time to get marketing and advertising out the door. This gives bidders plenty of time to arrange financing. When compared to a listing, auctions create a sense of speed and urgency to get bids in on the property.

Listings don’t have a date attached. This gives buyers more time to dwell on the idea if they want to put an offer in or not. Some buyers like to wait the seller out and wear them down.  Some of our past sellers have even mentioned they have tried selling their land to neighbors. The neighbors said they had interest, but the sellers never got a clear answer or offer right away. Once they hired us to do the auction, then the neighbors saw the sellers were serious about selling! Bids were placed before time ran out for opportunity to purchase neighboring land.

The 60 day time frame is also a huge plus when it comes to costs and saving money!

When selling property, you need to keep in mind that you continue paying taxes, insurance, and maintenance in the time period of selling. With a 60 day auction process, you can save thousands when compared to if your listing took longer than 60 days. Imagine if it took an extra 6-12 months to receive an offer. You’d be done paying on taxes, insurance, and extra costs months ago if you did an auction!  Not only do you save that money, you put it to use earlier on something which contributes to more saving.

One last tip for choosing the auction method, is to have an online only timed auction! Live auctions where bidders come to hear an auctioneer chant are typically more expensive to the seller. This is because you’re incurring more costs for more peoples time, costs of the venue, travel, refreshments for the crowd, printed items, insurance, and set-up fees. Hint: Ask to have an online only auction to save more in commission and fees. 

Choose the right marketing package! Do you need the whole works or just want a little advertising?

This is where you can save some GREEN! Advertising cost add up fast! At DreamDirt we charge no marketing and advertising fees for properties valued over $250,000. If you’re curious of how much your property is worth contact me today! Other companies may charge you for newspaper ads, flyers, drone video, postcards, digital ads, etc.! If a company you are interested in charges for marketing, make sure you understand where exactly your money is being spent. Some of our past sellers who didn’t meet our free advertising offer have decided to have us use photos instead of a video, and digital ad instead of print advertising.

When deciding how much advertising you want done for your farm, also take into consideration the quality of the marketing. Does the company produce appealing flyers and videos? Do they make it all in house or hire a third party? DreamDirt’s advertising is done all in house which makes it more affordable for our sellers!  

Commission costs still too high for you as a seller? 

Have you heard of Buyer’s Premium? It’s a way you can save on commission cost by charging the buyer a percentage on top of his final bid. This helps pay for costs of the auction. The auction serves the buyer and seller both.  With a 4% commission for example, you could pay for 2% and charge the buyer the other 2%. It’s completely up to you as a seller how you offer the property. 

With an auction you set the rules and the buyers bid accordingly. The buyer’s premium may reflect in the amount bidders are willing to bid. Bidders know they’ll owe and additional percentage on top of their bid and some it may not. We see it some in Iowa but other states and areas it’s more common. We just finished this auction with a 2% BP in Buena Vista County, IA and have also sold land in Kansas with Buyers Fee of 5%.

Compare several companies and don’t be afraid to negotiate costs and fees!

Most landowners only get one shot at selling land in their lifetime. My biggest piece of advice is to become educated on the process! Also interview companies you are interested in hiring to sell your most valuable asset! If you’re nervous about paying commission don’t be afraid to negotiate! It may surprise you what we can come up with. I’ve had sellers choose less commission percent but pay for marketing up front. The have set up a commission scale depending on what the farm sells for. Most choose the no risk option of only paying commission once the land is sold. At the end of the day, I want you to be comfortable with hiring me as your auctioneer at a price we can both agree too. I offer a free consultation and proposal for interested sellers to get started with the land selling journey. Start here today!

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Iowa Farmland Auction Prices

June 13, 2021

Here are the auction results from June 7th – 13th in Iowa. Farmland is selling incredibly well for landowners and we are seeing some record high prices! Appears to be many more land auctions coming up the rest of this month. If you’re ready to get started selling your land by auction or listing fill out my questionnaire today!

Buena Vista County, Iowa Farmland Auction

  • Live and online auction held at Old Rembrandt Gym Rembrandt, IA
  • Tract 1
    • 109.94 acres
    • Sold for $11,400/acre
    • 82.1 CSR2
    • $138.86/CSR2
  • Tract 2
    • 112.64 acres
    • Sold for $9,250/acre
    • 79.4 CSR2
    • $116.50/CSR2

Kossuth County, Iowa Farmland Auction

  • Live and online bidding held at Main Street Pub in Bancroft, IA
  • 73.29 acres
  • 97.6% tillable
  • 84.70 CSR2
  • Sold for $15,500/acre
  • $183/CSR2

Shelby and Crawford County, Iowa

  • 619 Acres sold in 4 tracts
  • Live auction held at the Dunlap Livestock Auction in Dunlap, IA
  • Tract 1
    • Sold for $12,400/acre
    • 257.9 acres
    • 97.5% tillable
    • 70.4 CSR2
    • $176.14/CSR2
    • Includes grain binds and outbuildings
  • Tract 2
    • Sold for $12,400/acre
    • 146.96 acres
    • 98.5% tillable
    • 66.8 CSR2
    • $185.63/CSR2
  • Tract 3
    • Sold for $13,400/acre
    • 136.53 acres
    • 98.12% tillable
    • 66.9 CSR2
    • $200.3/CSR2
  • Tract 4
    • Sold for $10,000/acre
    • 77 acres
    • 88% tillable
    • 64.7 CSR2
    • $154.56/CSR2

Jones County, Iowa

  • Live auction held at Lawrence Community Center in Anamosa, IA
  • 55.87 acres
  • 86.9% tillable
  • 86.5 CSR2
  • Sold for $13,0000/acre
  • $150.3/CSR2

Osceola County, Iowa

  • Live auction held at Little Rock Town and Country Club in Little Rock, IA
  • 150.20 acres
  • 95% tillable
  • 95.5 CSR2
  • Sold for $15,0000/acre
  • $157.07/CSR2

Free Resources for Landowners!

I enjoy educating landowners with free resources and providing the materials you need to help answer questions about land values and how to sell. The Iowa State University Extension and Outreach provides valuable information as well! Check out their surveys and reports here! As always, please reach out with any questions you have! I’d be more than glad to answer your call and help you!

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